The massive EPS beat on cost control and tax timing may provide near-term relief, but traders should monitor gross margin pressure and Direct/Converse declines as structural risks. Watch management commentary on tariff mitigation and China recovery in the earnings call.
Price Chart
Executive Summary
NIKE reported Q3 FY2026 earnings with revenue flat at $11.3 billion (down 3% currency-neutral) and diluted EPS of $0.35, a 206.5% beat versus analyst consensus of $0.11. Despite top-line weakness, particularly in Greater China and Converse, the significant EPS beat was driven by cost discipline and lower-than-expected tax rate, though gross margin declined 130 bps to 40.2% due to North American tariffs.
Key Financial Metrics
Key Facts
- Q3 revenue: $11.279 billion (flat YoY reported, down 3% currency-neutral)
- Diluted EPS: $0.35 vs. consensus estimate of $0.11 (206.5% beat)
- Gross margin decreased 130 bps to 40.2% due to higher North American tariffs
- Wholesale revenue up 5% YoY; NIKE Direct down 4%; Converse down 35%
- Net income down 35% YoY to $520 million
- Company returned $609 million to shareholders via dividends
Financial Impact
EPS beat of $0.24 above consensus ($0.35 actual vs $0.11 expected) on flat revenue
Risk Factors
- Gross margin under pressure from North American tariffs
- NIKE Direct and Converse segments showing persistent weakness
- Revenue flat despite cost-cutting, raising concerns about top-line growth sustainability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000320187-26-000026 |
| Document: nke-20260331.htm | 0000320187-26-000026 |
| Document: 0000320187-26-000026-index-headers.html | 0000320187-26-000026 |
| Document: 0000320187-26-000026-index.html | 0000320187-26-000026 |
| Document: 0000320187-26-000026.txt | 0000320187-26-000026 |
| 8-K Data (Synthetic) | 0000320187-26-000026 |
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| Type | Now | ||||
|---|---|---|---|---|---|
Sep 25, 2026 7d ago | ANALYST-DOWNGRADE | — | awaiting T+5 | — | — |
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Aug 10, 2026 7w ago | 8-K | $41.32 $40.06 | ▼ −3.05% | ▼ −2.65% | $33.17 (−19.72%) |
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US Market Status
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